Answered step by step
Verified Expert Solution
Question
1 Approved Answer
October 1, 2019, Deku and Dabi decided to pool their assets and form a partnership. The firm is to take over the business assets and
October 1, 2019, Deku and Dabi decided to pool their assets and form a partnership. The firm is to take over the business assets and assume business liabilities; equities are to be based on net assets transferred after the following adjustments: a. Dabi's inventory is to be valued at P350,000 b. An allowance for uncollectible accounts of P9,000 and P7,500, respectively should be set up. c. Accrued expenses of P21,000 are to be recognized on Deku's books. d. Dabi is to contribute sufficient cash to give him 60% interest in the new firm Statements of financial position for Deku and Dabi in October 1 before adjustments are presented below: Instructions: 1. Give the entries to adjust and close the books of Deku 2. Give the entries required on the books of Dabi upon the formation of the partnership 3. Prepare a statement of financial position for the new partnership of Deku and Dabi
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started